Document background
A Personal Promissory Note is commonly used in Denmark when one party wishes to formalize a lending arrangement with another party, typically in personal or small business contexts. This document, governed by Danish law, creates a legally binding obligation for the borrower to repay a specified sum of money to the lender according to agreed-upon terms. The Personal Promissory Note must comply with Danish financial regulations, particularly the Danish Promissory Notes Act (Gældsbrevsloven) and the Danish Contracts Act (Aftaleloven). It is particularly useful in situations where parties want to document a loan agreement without the complexity of a full loan agreement, while still maintaining legal enforceability. The document typically includes key information such as the loan amount, interest rate, payment schedule, and consequences of default, providing a clear record of the debt obligation and its terms.
